Understanding the indicator
U.S. Headline CPI Price Index YoY
CPI data is released with a one-month lag. For example, a September release reports August data.
Higher inflation can lift interest rates and strengthen the currency, but in recession, rising inflation may worsen the downturn and weaken the currency.
Higher-than-forecast CPI is bullish for the currency; lower-than-forecast CPI is bearish. Positive revisions strengthen the bullish signal, while negative revisions strengthen the bearish signal.